July 18, 2018

In This Issue:

  • Texas AG Leads 14-State Call to Defang BCFP
  • Compliance Update: GARC Fees Due Aug. 1
  • On the Horizon: Basic Manual Changes To Be Implemented as of Aug. 9
  • Registration for TLTA's Land Title Institute Is Open
  • GSE News: Why Fannie and Freddie May Need More Treasury Bailout Cash

Texas AG Leads 14-State Call to Defang BCFP

KUT | July 10, 2018
Ken Paxton is taking on the federal Consumer Financial Protection Bureau.

The embattled watchdog agency – which was established in the wake of the financial crisis to police financial service providers – is seeking penalties against Mississippi-based payday lender All American Check Cashing, alleging it misled customers.

Paxton and 13 other states filed a brief arguing the CFPB doesn't have constitutional authority to levy penalties.

In an announcement this morning, Paxton called the bureau a “rogue agency” that exceeds its constitutional authority.
Read More »

Compliance Update: GARC Fees Due Aug. 1

TLTA | July 16, 2018
Title agents are required to collect a Guaranty Assessment Recoupment Charge (GARC) fee for each owners and loan (mortgagee) policy issued throughout all of 2018, and then remit these funds quarterly to TTIGA. The fee—which is set by the Commissioner of Insurance—is $4.50 per policy for the entire year of 2018. The GARC fee will only be in effect for one year, and the remittance process is very similar to the Guaranty Fee remittance (the Guaranty Fee has been suspended for 2018). GARC funds for Q2 must be submitted by Aug. 1.
More Info on GARC »
GARC Remittance Form »

On the Horizon: Basic Manual Changes To Be Implemented as of Aug. 9

TLTA | July 17, 2018
On Friday, June 1 TDI announced that Insurance Commissioner Kent Sullivan signed a final order on agenda items that update, correct, and clarify rules and forms in the Basic Manual of Title Insurance.
TLTA has prepared a guide to help you navigate these changes. The guide categorizes all the Basic Manual changes and provides a brief description of each agenda item and a link to the full text. You can find the original "redline proposed changes" here for comparison.
This round of Basic Manual updates were effective June 10, but implementation of the new rules and forms was delayed until Aug. 9. 
TLTA's Basic Manual will be updated before the Aug. 9 implementation date.  
Learn More »
(NOTE: An additional round of Basic Manual changes are currently being considered by TDI. Learn more. )

Registration for TLTA's Land Title Institute Is Open

TLTA | July 18, 2018
Designed for real estate attorneys, agency owners and advanced closers, the annual Texas Land Title Institute brings top title professionals to the beautiful Hyatt Regency Hill Country Resort for world-class training and networking. Take advantage of networking with the best in the business and earn crucial MCLE hours at this exciting program. 
Texas Land Title Institute
Hyatt Regency Hill Country Resort and Spa – San Antonio
Dec. 6-7, 2018

Register Today »

GSE News: Why Fannie and Freddie May Need More Treasury Bailout Cash

National Mortgage News | July 12, 2018
Fannie Mae and Freddie Mac may be forced to take draws from the U.S. Treasury again, this time due to an accounting rules change for loan-loss reserves.

The Financial Accounting Standards Board is changing how financial institutions and investment companies determine their allowance for loan and lease losses. The existing "incurred loss" model lets companies build up a loss reserve over the life of a loan. But the new standard — known as Current Expected Credit Loss, or CECL — is an "expected loss" model, which requires companies to record a loss reserve at the time a loan is originated or acquired.

In other words, CECL changes the timing of when expected losses are recorded, but not the amount that's reserved, according to a recent Keefe, Bruyette & Woods research note.

Currently, Fannie Mae has an $18.6 billion reserve against its $2.9 trillion single-family guarantee portfolio, while Freddie Mac has $8.9 billion against a $1.8 trillion portfolio, KBW estimates. But those reserves are primarily set aside to cover risk on the government-sponsored enterprises' shrinking portfolio of precrisis loans.

Read More »

TLTA is scheduling more live webinars for 2018! Register now, or explore the On-Demand webinar library today!